Rents rise again in May

Posted: 29 Jun 2007 16:48:31 GMT

Rents rose for the sixth month in a row in May, new figures from one mortgage lender have shown.

Rents rose for the sixth month in a row in May, new figures from one mortgage lender have shown.

According to research from Paragon mortgage company, the average annual rent being charged by landlords stood at £10,702 last month - up ten per cent from the £9,665 average seen six months ago.

Continued strong demand from tenants appears to be behind the continued rent rises, with 63 per cent of landlords saying that demand was either stable or had increased.

"The private rented sector is buoyant as demand from tenants continues to be strong," commented Nigel Terrington, Paragon's chief executive.

"Many parts of the community, such as students, migrants, people on housing benefit, and first jobbers, rely on rented accommodation for their housing needs, and the sector is set to continue this growth over the next five to ten years."

He added that the forecasters predicting a significant downturn in the buy-to-let property market had overlooked the simple fact that there continued to be strong demand from tenants who could not afford their first step on to the property ladder.

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